Keep exisiting house but use equity as deposit on new how possible?

Deano_uk_2

Hello all,
I need some help please if you can spare the time.

My current home is worth £150K and I have a mortgage balance of £40k

I would like to keep this house and rent it out.

I intend to buy a property at around £200k.

I know I need to change my exisiting mortagge to a buy to let Mortgage but after that is done is it possible to use the equity in this house as some form of deposit/security against the house I want to buy.

If so how much of the equity can I use and what deposit would I need to provide myself ?

I approciate the figuere will vary from product to product but rough ideas would be great and an indication if this is actually possible.

Any help greatly appreciated

Deano

herbiesjp

You can raise up to 75% against the first property on a BTL basis

However, the rental income would need to support the new higher mortgage amount according to the rental coverage needed by the BTL lender

The new lender, for the new property, would also need to make sure that the property in the background is self financing i.e. rental income covers mortgage payment